No more taxes: Agents warn government on CGT
ARLA Propertymark has issued a warning to government not to use Capital Gains Tax reform to further punish the private rental sector.
Last week a report commissioned by Chancellor Rishi Sunak advocated a doubling of Capital Gains Tax on, amongst other things, profits from the sale of buy to let and holiday homes.
In addition it called for future CGT reforms to link more closely with income tax.
Although the government has stressed it is concentrating currently on the Coronavirus crisis, not tax reform, there has been no denial that the proposal will be taken on board at a later date.
Now ARLA Propertymark’s policy and campaigns manager – Timothy Douglas – says: “Letting agents and their landlords play a key role in maintaining a strong and thriving private rented sector. To this end, the current system of Capital Gains Tax does not paint the full picture of costs and responsibilities.
“Given recent changes to mortgage interest relief, the wear and tear allowance, and the ongoing impact of Covid-19, the UK government must tread carefully with any plans to change Capital Gains Tax as this could dramatically reduce the supply of rental properties.”
A number of groups, law firms and individual property professionals have criticised the CGT proposal, suggesting it may lead to a flood of sales by landlords and thus a shortage of letting stock.